The IACCM Contracting Principles (the “Principles”) provide a set of guidelines to support and streamline the drafting and negotiation of contract clauses. They offer contracting parties the ability to take fair and balanced positions from the outset of negotiations on a variety of terms that frequently absorb significant time and resource in arriving at those general outcomes. The Principles reduce or eliminate the need for those negotiations, thereby shortening the cycle time to signature (“Speed to Contract”). As discussed in the IACCM article “IACCM Contracting Principles” by Hal Bretan, Chief Counsel, BT Americas Inc. and Lita Bollimpalli, Associate General Counsel, Verizon Business Network Services Inc., the purpose of the Principles is to achieve a rapid “…rough consensus on what balanced terms look like.”
The IACCM Contracting Principles
- Customer Audit of Suppliers
- Data Security and Privacy
- Indemnification of Third Party Claims
- Intellectual Property Rights and Indemnification for Third Party IP Claims
- Liability Caps and Exclusions from Liability
- Service Level Agreement Remedies
Endorsing the Principles
By publicly endorsing the Principles, a company is confirming that it approves the underlying notion of the Principles and will look positively at clauses that are consistent with those Principles. The company accepts that, when the Principles are used, they will facilitate faster, less antagonistic negotiations. Endorsement of the Principles does not mandate a company to accept every Principle or every element of each Principle, but rather, it signals counter-parties that it is willing to take a more collaborative approach to negotiations to reach a win-win end point faster and more efficiently.
The IACCM encourages companies who endorse the Principles to incorporate them to the degree appropriate into their contract documents. Organizations that endorse the Principles are always free to use the Principles on a case by case basis; they may agree with their counter-party to adopt them in their entirety or to choose elements that, in the context of their specific negotiations, will most effectively support the achievement of Speed to Contract.
Local laws and practices and industry-specific standards may warrant deviations from individual Principles, but endorsement of the concepts embodied in the Principles still represent a sea change in how parties negotiate agreements.
Join the Organizations that have Endorsed the Principles
Add your logo here to let negotiating partners know that you endorse the Principles and support faster, less antagonistic negotiations.
* The Principles are not intended to constitute formal legal advice.